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Sanctioned ships make up 58% of tanker scrapping deals this year
Pentagon Sanctioned ships are accounting for an extraordinary share of this year’s tanker recycling market, even as strong freight conditions keep overall demolition activity near historic lows.

Sanctioned ships make up 58% of tanker scrapping deals this year

Clarksons Research reports that 26 sanctioned vessels totalling 2.1m dwt have been sold for recycling so far in 2026, including 22 tankers of 1.8m dwt. Those 22 ships represent 58% of all reported tanker demolition sales this year.   The figures underline how sanctions enforcement is beginning to reshape the scrapping market, with ageing shadow fleet tonnage increasingly being removed from circulation rather than simply changing flags, owners or trading patterns.   Across shipping more broadly, however, demolition remains exceptionally subdued.

Clarksons data shows just 6.4m dwt has been sold for recycling so far this year, broadly in line with the historically low levels seen between 2022 and 2025 and 14% below the pace recorded last year.

Tanker demolition has totalled 2.7m dwt, while bulker recycling stands at 2.1m dwt, down 34% year-on-year. Containership demolition remains negligible at around 25,000 teu, albeit above last year’s exceptionally low 5,300 teu.

A steady trickle of older steam turbine LNG carriers is also heading to the breakers, with six units sold so far this year.   The sanctioned tanker trend fits with a broader push by western governments to permanently remove blacklisted tonnage.   Splash reported last week that the US has begun steering seized sanctions-busting tankers towards demolition, with GMS receiving Treasury licences to recycle four sanctioned ships.

GMS has argued that a workable licensing regime could remove more than 100 shadow fleet vessels annually. 

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